Trading is a marathon, not a sprint: Why scaling back can be the key to success, decodes Sivakumar Jayachandran

“My advice is consistent: reduce your trading quantity, get comfortable with the new market and regulatory environment, and then gradually scale back up once you’ve adjusted. Trading isn’t a sprint—it’s a marathon,” says Sivakumar Jayachandran, the founder of OI Pulse.

In an interview with Kshitij Anand of ETMarkets on the sidelines of IOC 6.0 in Surat, Jayachandran said: “By scaling back initially, focusing on adapting to the new conditions, and maintaining discipline, clients can rebuild their confidence and return to their normal trading rhythm over time,” Edited excerpts:

Thanks for taking the time out. It was great connecting you on the sidelines of IOC 6.0. After the recent volatility seen in the first half of March, we are seeing some stability. What is your take on markets?
The market’s behavior following the volatility in the first half of March aligns with a common pattern: whenever a big fall occurs, there’s typically a period of sideways movement before any significant directional shift takes place.

We’re seeing that consolidation now, with the market stabilizing after the earlier turbulence. However, while there has been some upward movement recently, I wouldn’t classify it as a confirmed reversal just yet.

For it to be considered a true reversal, the market needs to break and sustain above key resistance levels—specifically 23,700 and 24,200.

Until that happens, this up move could simply be a temporary bounce within a broader consolidation phase.

Events like IOC 6.0, with its unprecedented turnout and positive energy, may have contributed to a lift in market sentiment. However, sentiment alone isn’t enough—technical confirmation is critical.

Traders and investors should remain cautious and watch these levels closely to determine the market’s next big move.

We have seen a lot of changes in the F&O segment from the regulatory front – how are you looking at it and have you seen a drop in participation?
If we view F&O trading as a business—which it essentially is—then adapting to regulatory changes becomes a necessity, not an option.

Just like any business facing external challenges, whether it’s new competition or shifting regulations, trading demands the same resilience. The only way to succeed is to adjust and move forward.

Yes, there has been a drop in participation following these regulatory shifts, as some traders are either stepping back to reassess or struggling to adapt. But this isn’t entirely surprising or insurmountable.

Reflecting on market conditions, I’ve noticed that the volatility we experienced in 2023 and 2024 was far more intense than what I saw when I was trading in 2016-17.

Back then, we rarely encountered those massive single-candle moves that became almost routine in 2023-24. Those extreme swings caught many traders off guard, leading some to exit the market altogether.

Now, with the regulatory changes in the F&O segment adding another layer of complexity, it’s a similar story—adaptation is key. Traders who can refine their strategies and embrace the new environment will come out stronger, just as they did in past cycles.

How are you seeing the recent correction in benchmark indices and how many stocks have plunged 30-50%? How are retail investors taking it?
The recent correction in benchmark indices is, in my view, a golden opportunity for long-term investing.

While it’s true that a significant number of stocks have plunged 30-50%, this kind of pullback is a natural part of market cycles and creates attractive entry points for those with a longer horizon.

Personally, I didn’t have a long-term portfolio until January 2025, when the market dropped by more than 10%. Since then, I’ve been steadily building my positions and continue to add slowly, seeing this as a favorable moment for long-term investors to step in.

For retail investors, the reaction depends on their experience. Newer investors who entered the market during the highs of 2023-24 are likely finding it tough to hold on.

Having joined at the peak, they haven’t yet seen the market’s ups and downs, so this correction might feel overwhelming.

On the flip side, seasoned retail investors who’ve witnessed various market conditions understand the bigger picture: what goes down in the short term tends to recover over the long run.

For them, this is just another chapter in the market’s story, and patience will eventually pay off.

What are the queries that you are getting from your clients?
Lately, the primary query I’m hearing from clients is whether they should continue treating trading as a business or step away entirely given the current challenges.

My advice is consistent: reduce your trading quantity, get comfortable with the new market and regulatory environment, and then gradually scale back up once you’ve adjusted. Trading isn’t a sprint—it’s a marathon.

Short-term hurdles, whether from volatility or rule changes, are part of the journey. By scaling back initially, focusing on adapting to the new conditions, and maintaining discipline, clients can rebuild their confidence and return to their normal trading rhythm over time.

The key is not to abandon ship but to navigate the storm with a clear, measured approach.

Has the volume dropped after changes in F&O expiry days for Nifty and Bank Nifty?
Yes, we can’t deny that trading volumes have dropped since the changes in F&O expiry days for Nifty and Bank Nifty were introduced. It’s a noticeable shift, but it’s not something we haven’t seen before.

When I was trading in 2016, volumes were lower than they are even now, and traders managed to adapt.

Then, after 2021, we saw a dramatic surge in volumes, and we adjusted to that high-volume environment as well. Now, with volumes declining again, the market is asking us to pivot once more.

The only way forward is to embrace this new low-volume reality and plan accordingly. There’s no point in resisting change—it’s part of trading’s evolution.

Just as we adapted to higher volumes in the past, we’ll adjust to this current phase. It’s all about staying flexible and aligning our strategies with the market we’re given.

How can one become a successful option scalper – what would you advise?
To become a successful option scalper, you need to focus on what you can control and let go of what you can’t.

Things like SEBI regulations, NSE policies, or market news are outside our influence, so worrying about them is pointless.

Instead, concentrate on what’s in your hands: your trading style, your habits, and—most importantly—your risk management. The first rule of success in trading is survival. To stay in the market, you must protect your capital at all costs.

For aspiring scalpers, my advice is to start small and build from there. Develop a clear, disciplined strategy tailored to the fast-paced nature of scalping, and stick to it religiously.

Pay close attention to risk management—set strict stop-losses and never over-leverage. Learn from every trade, especially the losses, and refine your approach over time.

Success doesn’t come from avoiding challenges but from mastering the elements within your control. If you can do that, you’ll not only survive but thrive as an option scalper.

(Disclaimer: Recommendations, suggestions, views, and opinions given by experts are their own. These do not represent the views of the Economic Times)